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Required information Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6 [The following information applies to

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Required information Problem 11-26A (Algo) Recording and reporting stock transactions and cash dividends across two accounting cycles LO 11-3, 11-6 [The following information applies to the questions displayed below.) Sun Corporation received a charter that authorized the issuance of 81,000 shares of $4 par common stock and 18,000 shares of $125 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation Year 1 Jan. 5 Sold 12,150 shares of the $4 par common stock for $6 per share. 12 Sold 1,800 shares of the 6 percent preferred stock for $135 per share. Apr. 5 Sold 16,200 shares of the 54 par common stock for $8 per share. Dec. 31 During the year, earned $305,3ee in cash revenue and paid $235,500 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 19, Year 2. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 2,700 shares of the $125 par preferred stock for $145 per share. May. 5 Purchased 450 shares of the common stock as treasury stock at $8 per share. Dec. 31 During the year, earned $247, see in cash revenues and paid $173,100 for cash operating expenses. 31 Declared the annual dividend on the preferred stock and a $0.25 per share dividend on the common stock. Required information c-1. What is the number of common shares outstanding at the end of Year 12 At the end of Year 2? How many common shares had been issued at the end of Year 1? At the end of Year 2? (Amounts to be deducted should be indicated with minus sign.) Schedule of Number of Shares of Common Stock Shares Shares Issued Outstanding Year 1 0 0 Totals Year 2 Totals 0 c-2. Are there any differences between issued and outstanding common shares for Year 1 and Year 2? 1 Issued common shares Outstanding common shares

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